Bill Gates and Warren Buffett’s ‘Giving Pledge’ Is Not Legally Binding

Five years ago, Bill Gates and Warren Buffett started a pledge to encourage wealthy individuals to give away half of their wealth in life or at death.   A growing number of wealthy philanthropists have since signed the ‘Giving Pledge,’ receiving the accolades and good publicity that comes with such a positive expression of generosity.  One thing that is less known about the Giving Pledge is that it is not legally binding. 

The Giving Pledge makes clear to those who sign that it is a moral pledge only, which means that there would be no ability to sue a person’s estate if they do not fulfill the promise to give away half the wealth.  The complexity of wealthy estates also makes it difficult to define what ‘half’ of the estate actually is, and how much of it the decedent controls. 

See Brendan Coffey, Pledge Aside, Dead Billionaires Don’t Have To Give Away Half Their Fortune, Bloomberg, June 3, 2015.

Special thanks to Joel Dobris (Professor of Law, UC Davis School of Law) for bringing this article to my attention.